THEORY X AND THEORY Y

Theory X and Theory Y

Theory X And Theory Y

Introduction

Today's organizational life is typified by chaos, uncertainty, and ambiguity. Managers and employees encounter constant change in their jobs, for example, an organization or department restructure, or perhaps a merger or de-merger, a leadership change, a business improvement change initiative, a conflict between employees, or even several of these all at once. Then there are the external factors that affect your company and your job such as the Asia financial crisis in 1997 and the effect from international events like the September 11(Robbins, 2001). This paper discusses Douglas McGregor's theory X and theory Y approach to managerial decisions.

Discussion

Successful managers recognize that organizational life is ambiguous and uncertain and that this undercuts rational analysis, problem solving and decision making. Therefore, they make decision by working from the assumption that what is most important about any event is not what happened but what it means.

Managerial decision making

Decision making is defined as a rational choice among alternatives. A decision is the result of making a judgment or reaching a conclusion. In order to perform their jobs well, managers must make good decision.

Individuals at all levels of management make decisions. The type of decision made is dependant on the specific role or level of status a manager holds within an organization. Top managers such as CEO's make broad executive type decisions that largely focus on setting organizational goals and the general direction they want the organization to head, - affecting the entire organization. Lower and middle managers or supervisors and bosses make decisions based on their working unit, such as setting monthly schedules, handling employee conflicts, allocating pay rises, and recruiting and disciplining employees. Senior managers are therefore experts in the line of industry they are involved in, while supervisors are seen as departmental specialists.

This report reviews the Theory X and Theory y and analyzes the effect of these theories on managerial decision making process. Theory "X" and "Y" beliefs are the foundation of management values. These values effect how managers and leaders interact with employees and are a driving factor in policy and decision making.

Theory X and Y

According to McGregor (1960), customary administration accepted implicitly in Theory X, which postulates that workers are inherently slovenly, indifferent to the desires of the association, and uninterested in doing a good job. Employees should not be anticipated to do any more than wholeheartedly necessary. As an outcome, administration has to direct, inspire, and command the workforces as if they were immature children. Control schemes are absolutely crucial and assignments should be specific. Close supervising and correction of presentation by supervisors is essential. Thinking should be left to superiors. Discipline and worry of penalty should be utilised to sustain measures of performance(Cotton 1993). Employees should be inspired mainly by “carrots” for good presentation and “sticks” for poor performance.

Opposite to conviction in Theory X is Theory Y, which postulates that workers vitally desire to do a good ...